Liverpool have completed the signing of Arsenal target James Milner. [Picture: Getty]

The summer transfer window is still a few weeks away from been officially open. However, this has not stopped clubs and players alike from wrapping up deals ahead of time.

Arsenal and Manchester United have reportedly been dealt a massive transfer blow with fresh reports that summer midfield target James Milner has finally agreed a deal with Liverpool and the transfer of the midfielder is set to be announced by the Reds.

This report is coming amid claims that the versatile midfielder was in talks with United in recent weeks over a potential move this summer.

The Mirror reported that City’s fierce rivals United have made their move; with it claimed executive vice-chairman Ed Woodward has approached the player’s representatives with regards to a summer switch to Old Trafford.

But now, according to The Times, Liverpool have reportedly agreed terms to complete the transfer of Milner, and he will formally arrive from Manchester City on July 1.

The report also says that City made a last ditch attempt to keep the versatile star at the Etihad beyond his current contract which is set to be up at the end of June.

City reportedly offered the English international a staggering £165,000-a-week deal, which the 29-year-old rejected.

But now Liverpool have beaten the Gunners to the 29-year-old after offering wages of £150,000-a-week.

This report will come as bad news to the Arsenal fans, after the versatile England international was said to have been close to a move to the Emirates.